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Tegeta's optimum to export from Richards Bay.

Tegeta Exploration and Resources, currently awaiting approval of its acquisition of Glencore's Optimum operation in South Africa, will reportedly acquire about one-tenth of the export rights at the Richards Bay export facility. According to Bloomberg, citing an interview with Tegeta shareholder Oakbay Investments CEO Nazeem Howa, the company will send 8 million metric tons (mt) through the facility, giving it the distinction of being the country's first "small" miner to do so.

The purchase "allows us access to an export contract," Howa reportedly said at an antitrust tribunal meeting on February 17. "Until now, that's been controlled by the big players. It's quite significant access for us."

Tegeta's purchase of Optimum cleared South Africa's Competition Tribunal, so long as the transaction will save jobs. The $137 million (2.15 billion rand) deal was first announced last December.

The Optimum thermal mine has been in business rescue, similar to bankruptcy protection in the United States, since last August after one of its customers, utility Eskom, cut off its orders over pricing issues.

Richards Bay, which also handles exports for Glencore, Anglo American and South32, shipped a record 75.4 million mt in 2015 and has a capacity of 91 million mt. It is Africa's largest such facility.

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Title Annotation:WORLD NEWS; Tegeta Exploration and Resources
Comment:Tegeta's optimum to export from Richards Bay.(WORLD NEWS)(Tegeta Exploration and Resources)
Publication:Coal Age (1996)
Article Type:Brief article
Geographic Code:6SOUT
Date:Mar 1, 2016
Words:206
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